Stock Performance and Market Context
On 19 Jan 2026, Deepak Builders & Engineers India Ltd recorded its lowest price in the past year at Rs.101.3, down 1.26% on the day. This decline follows two consecutive days of losses, with the stock falling by 2.86% over this period. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In comparison, the broader market has also experienced some weakness. The Sensex opened flat but ended the day down by 438.86 points, or 0.62%, closing at 83,055.63. Despite this, the Sensex remains within 3.74% of its 52-week high of 86,159.02. However, the index has been on a three-week losing streak, declining 3.16% over that span. Notably, the Sensex trades below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed technical signals.
Over the last year, Deepak Builders & Engineers India Ltd has underperformed significantly, delivering a negative return of 40.37%, while the Sensex gained 8.36% during the same period. The stock’s 52-week high was Rs.185.6, highlighting the extent of the recent decline.
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Financial Results and Profitability Trends
The company’s recent financial disclosures have highlighted several areas of concern. For the quarter ended September 2025, Deepak Builders & Engineers India Ltd reported net sales of Rs.45.05 crores, representing a sharp decline of 69.1% compared to the average of the previous four quarters. Correspondingly, the profit after tax (PAT) for the quarter stood at Rs.4.98 crores, down 65.4% versus the prior four-quarter average.
Operating profit has also contracted significantly, falling by 48.83% in the latest quarter. This deterioration has contributed to the company receiving a "Very Negative" rating for its recent results. The operating profit to interest coverage ratio has dropped to a low of 2.27 times, indicating tighter margins and reduced buffer to service debt obligations.
These results mark the third consecutive quarter of negative financial performance, underscoring a challenging period for the company. The sustained decline in sales and profitability has weighed heavily on investor sentiment and share price performance.
Long-Term Performance and Valuation Metrics
Despite recent setbacks, Deepak Builders & Engineers India Ltd has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. This suggests that the company has been able to expand its core earnings over a longer horizon, even as short-term results have faltered.
The company’s return on capital employed (ROCE) stands at 14.9%, a figure that reflects reasonable efficiency in generating returns from its capital base. Additionally, the enterprise value to capital employed ratio is 1.1, indicating a valuation that some may consider attractive relative to the company’s capital structure.
However, the stock’s performance over the past three years, one year, and three months has been below par compared to the BSE500 index, signalling persistent underperformance relative to broader market benchmarks.
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Shareholding and Market Grade
The majority ownership of Deepak Builders & Engineers India Ltd remains with promoters, maintaining a concentrated shareholding structure. The company’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell as of 18 Dec 2025, an upgrade from the previous Sell rating. This grading reflects the company’s deteriorated financial health and market performance.
Market capitalisation is graded at 4, indicating a relatively modest size within the construction sector. The stock’s day change of -1.26% today aligns with sector performance, which has also been subdued amid broader market pressures.
Summary of Key Metrics
To summarise, Deepak Builders & Engineers India Ltd’s stock has reached a new 52-week low of Rs.101.3, reflecting a year-long decline of 40.37%. The company has reported three consecutive quarters of negative results, with net sales and PAT falling sharply in the latest quarter. Operating profit has contracted by nearly half, and interest coverage ratios have weakened. Despite these challenges, the company maintains a strong long-term operating profit growth rate and a ROCE of 14.9%, with valuation metrics that some may find appealing.
Market conditions remain challenging, with the Sensex also experiencing a recent downtrend. The stock’s position below all major moving averages signals continued caution among market participants.
Conclusion
Deepak Builders & Engineers India Ltd’s fall to its 52-week low encapsulates a period of financial strain and market headwinds. The company’s recent quarterly results have been disappointing, contributing to the stock’s underperformance relative to the broader market. While long-term growth metrics offer some context of resilience, the near-term financial indicators and share price trends highlight ongoing difficulties within the construction sector and the company’s specific challenges.
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